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Scotland Wins UK-Equivalent Credit Ratings, Sets 2026–27 Launch for First ‘Kilt’ Bonds

Officials will appoint banks as joint lead managers to prepare issuance contingent on market conditions, the May election.

Overview

  • Moody’s assigned an Aa3 rating and S&P rated AA, matching the UK and surpassing countries such as Spain, Italy and Japan.
  • First Minister John Swinney said the government is on track to begin issuing bonds in 2026–27 to fund capital investment in key infrastructure.
  • The programme could total up to about £1.5 billion over the next parliamentary term, with specific issuance plans decided closer to the time.
  • The government will soon engage banks as joint lead managers, with EY advising, as it builds market access for the so‑called ‘kilt’ bonds.
  • Ministers will outline the projects to be financed in January, and rating agencies cautioned that steps toward independence could pressure the rating.